On October 16, the Japanese stock market ended its six-day losing streak on Friday, with major indices rising due to a rebound in AI-related stocks. However, with the approaching corporate earnings season and the upcoming U.S. midterm elections, investors remained cautious, limiting market gains. The Nikkei 225 index rose 1.39% on Friday to close at 65,324.29 points, despite a nearly 5% plunge in the previous session, though it still recorded a weekly loss of 5.37%. The TOPIX index also climbed 1.67% to end at 4,066 points, though it fell 0.95% for the week. Daisuke Hashizume, a senior strategist at Daiwa Securities, noted that the market rebound was primarily driven by investors' covering of positions after the previous day's sharp decline, with no other significant factors driving gains. He further pointed out that market participants lacked the incentive to buy aggressively ahead of corporate earnings releases and the U.S. midterm elections. Investors are closely watching the impact of the election results on U.S. President Trump's policy plans, including proposals to provide $5,000 subsidies to adults and increase military spending.